Post by bobbiburke on Dec 16, 2009 17:04:10 GMT -7
Question: Can a buyer use IRA monies as a down payment?
Yes if they are cashing it out, that's fine because the statement is the source and doesn't have to be seasoned for 60 days.
If there is a statement in the file and the IRA is not liquidated before the loan's turned in then underwriting will only give them 60% credit for the amt of money in the acct. So, better to do ahead of time so all the funds are available for full loan approval.
Kristina Sides
Mortgage Professional-Nationstar Mortgage 350 Highland Drive
Lewisville, TX 75067
972 316 5991-Direct
214 488 4507- fax
*BBurke Per IRS tax code: Taxpayers may NOT borrow from an IRA [like you can from a 401K]; however, taking an IRA distribution from an IRA is allowable with no tax/penalty as long as the amount distributed is replaced or a new IRA opened within 60 days. Monies become taxable as income on the 61st day [and a 10% penalty applies if taxpayer is younger than 59 1/2]
Yes if they are cashing it out, that's fine because the statement is the source and doesn't have to be seasoned for 60 days.
If there is a statement in the file and the IRA is not liquidated before the loan's turned in then underwriting will only give them 60% credit for the amt of money in the acct. So, better to do ahead of time so all the funds are available for full loan approval.
Kristina Sides
Mortgage Professional-Nationstar Mortgage 350 Highland Drive
Lewisville, TX 75067
972 316 5991-Direct
214 488 4507- fax
*BBurke Per IRS tax code: Taxpayers may NOT borrow from an IRA [like you can from a 401K]; however, taking an IRA distribution from an IRA is allowable with no tax/penalty as long as the amount distributed is replaced or a new IRA opened within 60 days. Monies become taxable as income on the 61st day [and a 10% penalty applies if taxpayer is younger than 59 1/2]